Supervalu Third Quarter Earnings Sneak Peek

Supervalu (NYSE:SVU) will unveil its latest earnings today, Thursday, January 10, 2013. SUPERVALU operates as a grocery retailer in the United States.

Supervalu Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 7 cents per share, a decline of 70.8% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 12 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 7 cents during the last month. Analysts are projecting profit to rise by 61.6% compared to last year’s 48 cents.

Past Earnings Performance: The company has missed estimates in the last two quarters. In the second quarter, it missed the mark by 12 cents as a result of reporting 0 cents against an estimate of profit of 12 cents per share. In the first quarter, the company fell short of forecasts by 19 cents.

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A Look Back: In the second quarter, the company swung to a loss of $111 million (52 cents a share) from a profit of $60 million (28 cents) a year earlier, missing analyst expectations. Revenue fell 4.6% to $8.04 billion from $8.43 billion.

Wall St. Revenue Expectations: On average, analysts predict $7.9 billion in revenue this quarter, a decline of 5.2% from the year-ago quarter. Analysts are forecasting total revenue of $34.49 billion for the year, a decline of 4.5% from last year’s revenue of $36.1 billion.

Analyst Ratings: There are mostly holds on the stock with 10 of 12 analysts surveyed giving that rating.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of four-straight quarters of revenue decreases. Revenue fell 4% in the third quarter of the last fiscal year, 5% in fourth quarter of the last fiscal year and 4.7% in the first quarter and then fell again in the second quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 0.98 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, a ratio less than one could indicate a company may have difficulty meeting current obligations. The company improved this liquidity measure from 0.97 in the first quarter to the last quarter driven in part by an increase in current assets. Current assets increased 1.7% to $3.31 billion while liabilities rose by 0.6% to $3.39 billion.

Here’s how Supervalue has traded over the past 3 months ahead of its upcoming quarterly earnings release:

Screen Shot 2013-01-10 at 8.56.12 AM

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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